The bail applications of Price Waterhouses partners S. Gopalakrishnan and Srinivas Talluri, who audited the accounts of Satyam Computer Services, were rejected by a court here on Tuesday.

Sixth Additional Chief Metropolitan Magistrate D. Ramakrishna also allowed officials of the Crime Investigation Department (CID), which is probing the Satyam scam, to take into custody the two from 10.30 a.m. on Wednesday to 4 p.m. on Thursday. Both are now in the Chanchalguda Central Prison here.Refutes claim

In a statement, Price Waterhouse strongly rebutted the claim made by the prosecution on Monday that Mr. Gopalakrishnan and Mr. Talluri were not its partners and that they knowingly misrepresented their affiliation.

It strongly asserted that both were, in fact, partners of Price Waterhouse Bangalore. In addition, Price Waterhouse Bangalore had a branch in Hyderabad and both were appropriately registered with the Institute of Chartered Accountants of India. Their lawyers had submitted documentary evidence to that effect to the court.

Further, the auditing firm recalled that both had strongly rebutted the prosecutions allegations that they engaged in criminal conduct in relation to the audit of Satyam.Counsels claim

Hyderabad Special Correspondent reports:

S. Bharat Kumar, counsel for Satyams former chairman B. Ramalinga Raju and his brother B. Rama Raju, said officials of the Securities and Exchange Board of India (SEBI) could only record their statements and not interrogate them.

He said the Supreme Courts order clearly asked the Superintendent of Chanchalguda Prison to permit A. Sunil Kumar, SEBI general manager, who was the investigating officer under relevant provisions of the SEBI Act, to record the statements of the two.

Their lawyers would make out an application to the prison superintendent to permit them to be present when the SEBI officials recorded the statement. The Raju brothers needed their assistance, he said.